??converting to 7??

[Sick&Tired]

Right now my husband and I don't qualify for Chapt 7, but we really need to file ASAP. We also need to keep our home. My hours are being cut back at work, so in the next 6-8 months we should pass the means test for Chapt. 7. If we file Chapt 13 now, I know we can convert to Chapt 7 anytime thereafter (as long as we qualify), but can we convert and still keep our home? Are there any special rules I should know about when converting? Thanks!

[HHM]

First, are you behind on your mortgage payments? if so, by how many months?

[keepmine]

Also, what state are you in and, how much equity do you have in your home?

[Sick&Tired]

We live in KY and we're 1 month behind on our house payment. We probably have between $5,000-$10,000 in equity.

[coma]

You may be able to convert, however, you will have had to have paid all of the money you are behind in order to keep the home.

[keepmine]

Are you still current on debts you wish to discharge in bk? If so, stop paying them and use the money to get current on the mortgage and just wait it out until it's time to file a Chapter 7.

[EveryDayAdam]

Are you still current on debts you wish to discharge in bk? If so, stop paying them and use the money to get current on the mortgage and just wait it out until it's time to file a Chapter 7.

agreed. Nothing significant is going to happen in the 6 months it will take for you to qualify for chapter 7. You'll get a bunch of phone calls and some nasty-grams for sure, but it will take them much longer than that to get down and dirty. By then, you'll be able to file. So catch up on your mortgage and just do a 7 from the get-go...life will be much easier, and you'll end up paying less in the long run.

Pay your house, pay your cars. Don't worry about any unsecured debts...they are going away...no point in throwing good money after bad if you're going to file.